Unfortunately that a Tenterden residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Tenterden property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If the number of years remaining falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Tenterden will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Tenterden can be a difficult process. We recommend you obtain professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Tenterden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Gabriel, came dangerously close to the 80-year mark with the lease on his garden apartment in Tenterden. Having purchased his home two decades ago, the unexpired term was of no significance. by good luck, he noticed he would imminently be paying an inflated amount for Extending the lease. Gabriel extended the lease just in the nick of time last July. Gabriel and the freeholder in the end agreed on an amount of £5,000 . If the lease had dipped to less than 80 years, the sum would have gone up by a minimum £875.
Last Winter we were contacted by Mr and Mrs. D Campbell , who moved into a first floor flat in Tenterden in October 2012. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative premises in Tenterden with a long lease were valued around £270,000. The mid-range amount of ground rent was £55 billed quarterly. The lease concluded on 26 July 2101. Having 75 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.
Last Summer we were approach by Dr Aarav Mason , who acquired a basement apartment in Tenterden in April 2000. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable properties in Tenterden with 100 year plus lease were worth £168,800. The mid-range amount of ground rent was £60 invoiced yearly. The lease elapsed in 2081. Considering the 55 years left we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus costs.